Figure 4-4 -Assume that Figure 4-4 shows demand for soda.A decrease in the price of apple juice will change demand from A) D₁ to D₂. B) D₂ to D₁. C) D₂ to D₃. D) D₁ to D₃.

Question

Quizplus · Accepted Answer

A decrease in the price of apple juice is not directly related to the demand for soda, so the demand curve would not shift. However, a decrease in the price of apple juice could lead to consumers switching from soda to apple juice, reducing the quantity of soda demanded at every price. This would result in a movement along the same demand curve, shifting it leftward from D₂ to D₁. Therefore, the correct answer is B.

Figure 4-4 -Assume That Figure 4-4 Shows Demand for Soda.A Decrease in Soda.A